Development of the Video Game Industry in China in the Beginning of 21st Century

The policy of reform and opening-up led to the formation of the PRC game industry, which became an important element of the socio-economic landscape of the state during the last two decades of the XX century. The Chinese authorities' ban on importing foreign consoles at the very beginning of the 21st century strengthened the local PC sector and multiplayer games market. This not only became the driving force behind the industry's development, but was also used by the political establishment to strengthen ties with young people through various cultural, historical and propaganda projects, as well as support for cyber sports. Active government involvement was a response to the rapid expansion of the national computer entertainment industry, which started to cover a broader population; this led to both positive and negative consequences. Regulatory authorities focused on the impact of the gaming industry on young people, consistently expanding regulations and establishing stricter and clearer rules of behavior in virtual space and on the Web. At the same time, some restrictions may have been formal in nature, allowing the Chinese computer entertainment sector to maintain and develop international ties. In addition, the PRC authorities restrained the penetration of Western firms into the local market through regulatory mechanisms, seeking to make this process controlled, but preserving opportunities for mutually beneficial cooperation with the leaders of the Western industry. Favorable conditions were also created for the competitive development of local gaming firms, which led to the formation of a group of the strongest companies, which, having strengthened their positions in the domestic market, began global expansion. Thus, the gaming business has become another element for the modern Chinese state to demonstrate its national power and expand its international influence.